Budget 2026

The countdown to the Union Budget 2026–27 has begun, with all eyes on Finance Minister Nirmala Sitharaman as she prepares to present her ninth consecutive budget, shaping expectations for both the economy and the common citizen. FM Sitharaman is expected to present the Budget 2026 in the Parliament at 11:00 AM.

Until 1999, the Union Budget was presented at 5 PM, a tradition from the colonial times that matched British office hours. However, Finance Minister Yashwant Sinha changed this tradition in 1999 by moving the budget presentation to 11 AM, which is still followed today. Later, in 2017, Finance Minister Arun Jaitley shifted the Budget date from the end of February to 1 February. What makes this year notable is that 1 February falls on a Sunday.

The Halwa ceremony, customarily held to mark the final stage of budget preparation, was held on 27 January in the Budget Press at North Block, in the presence of the Finance Minister. The ceremony takes place before officials are locked in to prepare the Union Budget.

The Budget session commenced on 28 January with a joint address by President Droupadi Murmu to both the Houses, and on 29 January, Finance Minister Nirmala Sitharaman tabled the Economic Survey.

According to the Economic Survey 2026, the Indian economy is expected to expand by 6.8-7.2% in FY27, supported by strong macro fundamentals and a series of regulatory reforms. The survey also found that India’s core and headline inflation rates are likely to be higher in FY27 than in FY26. However, it is unlikely to be a concern. As of November 2025, India's fiscal deficit stood at 62.3% of the Budget Estimates, and the government aims to attain a fiscal deficit target of 4.4% of GDP by FY26, the survey noted.

Budget 2026-27 will be the second budget of the Prime Minister Narendra Modi-led government's third term. FM Sitharaman presented her maiden budget on 5 July 2019. Interestingly, she holds the record for delivering the longest ever budget speech in India’s history, speaking for over 2 hours and 40 minutes while presenting the Union Budget for 2020-21.

The budget is prepared by the Ministry of Finance, with the Department of Economic Affairs playing a key role. The process begins several months in advance and includes extensive consultations with various stakeholders, involving central ministries, state governments, industry bodies, economists, and civil society organisations, among others.

The previous budget offered much-needed relief to India's middle class. From no income tax on income of up to ₹12 lakh to restructuring tax slabs and rates under the new regime, the budget 2025-26 eased the tax burden across income groups.

On the economic and development front, the last budget focused on four engines of development: agriculture, MSME, investment, and exports.

Here's a look at the expenditure of major items from Budget 2025-26

• Defence ₹4,91,732 cr
• Rural Development ₹2,66,817 cr
• Home Affairs ₹2,33,211 cr
• Agriculture and Allied Activities ₹1,71,437 cr
• Education ₹1,28,650 cr
• Health ₹98,311 cr
• Urban Development ₹96,777 cr
• IT and Telecom ₹95,298 cr
• Energy ₹81,174 cr
• Commerce & Industry ₹65,553 cr
• Social Welfare ₹60,052 cr
• Scientific Departments ₹55,679 cr